Sean Parnell on Tax Reform

Eliminate progressivity & create a simpler 25% tax

Our laws give tax credits based on how much money companies spend in oil fields, not based on how much of that spending leads to production. While Alaskans haven't always seen eye to eye on these issues, we can all see the obvious:
Unless we restore balance to our tax system, our oil fields will become obsolete. We must make reforms--and we must make them now. Waiting only makes this problem worse.

By eliminating progressivity, and rebalancing capital tax credit payments, we can create a simpler 25 percent tax. Gone will be the old arguments about what qualifies for the capital expenditure credits. Gone will be the need to calculate
progressivity each month.

What will remain will be a more balanced, more competitive, and more predictable tax system, one with greater protections for Alaskans at lower oil prices, in exchange for lower taxes at higher oil prices.

Meaningful tax reform; cut spending by $856M

We will be wise stewards of our citizens' money. I have proposed a balanced budget that holds the line on government spending, so we can add nearly $4 billion to our savings accounts for future years. This budget reduces total expenditures by
$856 million without shortchanging important investments. It includes more than $1 billion for infrastructure projects; it forces agencies to save where they can--eliminating 288 vacant positions--so we can spend where we must.

Tonight
I'm asking each of you to vote yes on meaningful tax reform. The logic is clear: Meaningful tax reform means Alaska will have a more competitive economy. A more competitive Alaska economy means more investment in Alaska. More investment in
Alaska means more oil production. And more oil production means a bigger economic pie for Alaskans. In addition to lowering taxes, we are working to increase oil production by streamlining the State's permitting processes.

Support the Cut, Cap, Balance Pledge

The pledge opposes any federal debt limit increase unless substantial spending cuts are made, federal spending caps are in place and a balanced budget amendment to the U.S. Constitution is passed.

Significant short term cuts, a statutory cap on spending and a strong balanced budget amendment will put our nation on a path to living within our means. If the balanced budget amendment is sent to the states, I will support it for ratification.

Source: 2011 gubernatorial press release #5840
, Jul 7, 2011

Suspend the state motor fuel tax since we have enough money

Where the State of Alaska has enough money to get by, we ought to return some of it to the people. That is why I proposed suspending the state motor fuel tax for two years.
The state's road maintenance money is in no way tied to the amount of the fuel tax. So where the state can responsibly give the people's money back, we ought to do it.

Source: Alaska 2010 State of the State Address
, Jan 20, 2010

Supports the Taxpayer Protection Pledge.

Parnell signed the Taxpayer Protection Pledge against raising taxes

[The ATR, Americans for Tax Reform, run by conservative lobbyist Grover Norquist, ask legislators to sign the Taxpayer Protection Pledge in each election cycle. Their self-description:]

In the Taxpayer Protection Pledge, candidates and incumbents solemnly bind themselves to oppose any and all tax increases. Since its rollout in 1986, the pledge has become de rigeur for Republicans seeking office, and is a necessity for Democrats running in Republican districts. Today the Taxpayer Protection Pledge is offered to every candidate for state office and to all incumbents. More than 1,100 state officeholders, from state representative to governor, have signed the Pledge.

The Taxpayer Protection Pledge: "I pledge to the taxpayers of my district and to the American people that I will: ONE, oppose any and all efforts to increase the marginal income tax rate for individuals and business; and TWO, oppose any net reduction or elimination of deductions and credits, unless matched dollar
for dollar by further reducing tax rates."

Opponents' Opinion (from wikipedia.com):In Nov. 2011, Sen. Harry Reid (D-NV) claimed that Congressional Republicans "are being led like puppets by Grover Norquist. They're giving speeches that we should compromise on our deficit, but never do they compromise on Grover Norquist. He is their leader." Since Norquist's pledge binds signatories to opposing deficit reduction agreements that include any element of increased tax revenue, some Republican deficit hawks now retired from office have stated that Norquist has become an obstacle to deficit reduction. Former Republican Senator Alan Simpson, co-chairman of the National Commission on Fiscal Responsibility and Reform, has been particularly critical, describing Norquist's position as "no taxes, under any situation, even if your country goes to hell."